Pension Calculator

Project your retirement savings with compound growth estimates. Based on UK workplace pensions and personal pension schemes for 2024/2025.

Auto-enrolment minimum: 3%

Historic UK equity average: ~7% after inflation

2024/25 full new State Pension: £221.20 per week (£11,502 per year)

Shows real purchasing power in today’s money

At Retirement (Age 65)

Return: 7% annually
Projected Pension Pot £0.00 30 years of growth
Monthly Retirement Income £0.00 At 4% withdrawal rate
Tax-Free Lump Sum £0.00 25% of pot available
Total Contributions £0.00 Your + Employer input

Year-by-Year Growth Projection

Chart shows every 5 years from now until retirement. Click a bar for details.

Where Your Money Comes From

Current Pot £25,000
Your Contributions £0
Employer Contributions £0
Investment Growth £0
Final Projected Pot £0

Lifetime & Annual Allowances

Annual allowance (2024/25): £60,000 — maximum you can contribute with tax relief. Lifetime allowance charge removed but monitoring continues. Check if you’ve tapered contributions due to high income.

Summary

By age 65, your pension pot could grow to approximately £XXX,XXX based on current contributions of £200/month plus employer match. This would provide a monthly retirement income of around £X,XXX.

How Pension Projections Work

This calculator uses compound interest formulas to project your pension pot growth over time. The formula applied is: Future Value = PV × (1 + r)^n + PMT × [((1 + r)^n − 1) / r] where PV = present value, r = monthly interest rate, n = total months, PMT = monthly contribution.

Employer contributions are added on top of your monthly input based on the percentage you enter. Auto-enrolment minimums require employers to contribute at least 3% of qualifying earnings.

State Pension 2024/2025

Type Weekly Amount Annual Amount
New State Pension (post-April 2016) £221.20 £11,502
Old State Pension (pre-April 2016) £169.50 £8,814
Full Retirement Age Currently 66, rising to 67 between 2026-2028

To receive the full new State Pension, you need 35 years of National Insurance contributions or credits. Partial pensions are paid for fewer qualifying years (minimum 10 years).

Tax-Free Lump Sum

You can typically take up to 25% of your pension pot as a tax-free lump sum when you retire. The remaining 75% is taxed as income when withdrawn. Some schemes allow phased retirement with partial lump sums.

Example: On a £500,000 pot, you could take £125,000 tax-free and draw down the remaining £375,000 over your retirement.

Annual Allowance & Lifetime Allowance

  • Annual Allowance (2024/25): £60,000 — maximum total contributions (you + employer) eligible for tax relief
  • Tapered Annual Allowance: Reduces to £10,000 if threshold income exceeds £260,000 AND adjusted income exceeds £360,000
  • Lifetime Allowance: Charge removed in 2024, but monitoring continues. Former limit was £1,073,100
  • Money Purchase Allowance: £10,000 if you’ve already started taking flexible withdrawals

Withdrawal Strategies

  • 4% Rule: Withdraw 4% of pot annually, adjusted for inflation (sustainable for 30-year retirements historically)
  • Drawdown: Keep money invested and withdraw as needed (market risk remains)
  • Annuity: Buy guaranteed income for life (rates vary by provider and health)
  • Phased Retirement: Combine part-time work with gradual pension drawdown

Compound Growth Examples

Small increases in monthly contributions have massive long-term effects:

Monthly Contribution At Age 65 (starting age 35, 7% return) Total Contributed Interest Earned
£100 £122,300 £36,000 £86,300
£200 £244,600 £72,000 £172,600
£300 £366,900 £108,000 £258,900

Important Disclaimer

This calculator provides estimates only. Your actual pension value will depend on:

  • Actual investment performance (markets fluctuate)
  • Fees and charges (typical workplace pension: 0.3-0.75% annually)
  • Changes to contribution levels throughout your career
  • State pension age changes by government
  • Tax rule modifications
  • Individual NI contribution history for state pension

Always review your pension statements annually and consult a qualified financial adviser for personalised retirement planning.

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